using robust analytical models to compare income and deduction claims to individuals or businesses in similar circumstances. We may ask for clarification when income and claim patterns are outside our expectations.

For small businesses our activities also include:

investigating when employees tell us they may not have received their full super guarantee entitlements, as well as using our own data to identify employers who are likely to not be meeting their super guarantee obligations

using the small business benchmarks along with other risk indicators to identify businesses that may be avoiding their tax obligations by not reporting some or all of their income

investigating concerns reported by people who think there could be inappropriate or unfair business practices occurring.

Actions we take to deal with those who do the wrong thing include:

imposing penalties and charging interest responsibilities aren't fully met. Honest mistakes we will take this into account, but deliberately avoiding tax will result in much firmer action (including prosecution). If you do find that you have made an error you should tell us as soon as you can – see how to correct a mistake

taking firmer action, including using the full force of the law, for those abusing the tax and super systems. See tax crime prosecution results for examples.

Individuals

reviewing or auditing where it seems income may not have been reported, or deductions have been incorrectly claimed.

Small businesses

For small businesses, our activities also include:

identifying businesses without electronic payment facilities as they are at more risk of making a mistake and not declaring some, or all, of their income

investigating when employees notify us they may not have received their full super guarantee entitlements from their employer, as well as using our own data to identify employers who are likely to not be meeting their super guarantee obligations (see our compliance approach for more detail.)

Privately owned and wealthy groups

For privately owned and wealthy groups our activities also include:

applying a risk-differentiation framework to determine the level of our interactions, based upon our understanding of risk positions, circumstances, choices and behaviours.

making contact if we identify a potential issue with tax affairs to resolve or better understand the matter. If the matter is not resolved and requires further examination we will generally conduct a review or audit.

deeper investigations on particular matters of potential concern. For example, we have established a Trusts Taskforce to investigate aggressive tax avoidance and evasion using trusts.

Publicly listed businesses

For publicly listed businesses our activities also include:

applying a risk-differentiation framework to determine the level of our interactions based on our understanding of risk positions, circumstances, choices and behaviours.

Not-for-profit organisations

For not-for-profit organisations our activities also include:

dealing with areas of concern including where the organisation has incorrectly accessed tax concessions, such as providing help to get things right or, where appropriate, cancelling entitlements to access tax concessions.

Super funds

For super funds our activities also include:

Reviewing contraventions reported as a result of annual independent audits of SMSFs by approved SMSF auditors and risks identified from our data holdings. We use a risk differentiated approach to deal with non-compliance of SMSFs based on the overall risk posed by a fund.

Monitoring the compliance of approved SMSF auditors and, if we identify a failure to adequately and properly perform duties, referring them to the Australian Securities & Investments Commission (ASIC) for investigation.

Identifying and pursuing intermediaries who seek to exploit vulnerabilities in the system, including detecting fraud and/or illegal early release of super.

Large super funds generally try to do the right thing, but we may identify a significant issue. In this situation, we may:

provide a diagnostic report and work with administrators and funds to interpret the results

encourage self-correction using voluntary disclosures.

Tax professionals

For tax professionals our activities also include:

ongoing practitioner compliance programs focused on

practice management, including lodging clients’ returns by lodgement program due dates

return preparation processes, including omission of income and refund fraud

information security

promotion of tax avoidance schemes

identifying and dealing with unregistered tax and super professionals

where appropriate, we will undertake audit action, civil litigation, impose interest and penalties, and prosecution.

We use various sources of information and we undertake a range of compliance activities to detect and deal with people or organisations not meeting their tax and super obligations.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.